When faced with decisions about retirement, how you want to receive your super may be high on your list – whether you choose to receive it through regular pension payments, withdraw it as a lump sum, or like many people, maybe a combination of both.
There’s generally no right or wrong answer – it depends on your personal circumstances, your retirement plans and what the best strategy is for your circumstances.
Let’s take a look at some of the features of both options – a retirement pension (or income stream), compared with a lump sum benefit.
From a tax perspective, all super, whether it’s paid as a pension or a lump sum, is tax-free after you turn 60. If you’re under 60, tax is generally payable on the taxable component of your super.
When you take the above choices and factors into account, together with the potential tax implications and possible effects on Age Pension or other government entitlements, it’s important to get the right advice for your circumstances before finalising any decisions. As a Group Super member, there are different advice options available to you.
Find out more
Retirement, and how it may be funded, can take on different meanings from person to person. This booklet provides detailed information that may help with your planning. (Source: ASIC MoneySmart)
Try this handy calculator to help you determine how long your pension may last, and options to help make it last longer. (Source: ASIC MoneySmart)